1. I keep my e fund in a saving account. I’m pretty discipline so I haven’t had any problem with blowing it.
    Usually we keep about 3 months of living expense in the efund. Over the last year, we only dipped into it to buy a replacement vehicle.
    In the past we’ve used it to fund vacations. 🙂 A vacation will make a dent in the efund, but we build it back up pretty quick.

    • We have separate accounts for vacation funding.

      Since I paid off my car last month, I’ve set up an auto-deposit of half the payment in a “next car fund”.

      We did dip into it recently, though. INGDirect had a promo to get a $50 signing bonus when you opened an IRA of at least $200, so my wife an I each opened an IRA. We got a 25% return on our money and a boost to our retirement, so we figured it was worthwhile.

  2. Sleep on it.

    That is very good advice! That goes for any big ticket purchase. That’s yet another reason I prefer shopping online – no high pressure salesman trying to make a quick sale.

    • I’m to the point where I shop online for anything possible. I even buy household goods–like diapers and soap–online. It’s cheaper and far less stress.

  3. We keep some of our emergency fund in cash, in the safe, and some in a savings account. It’s a few months of current living expenses, which would be cut anyways during the first three months, and *really* cut with a vengeance during the next three. At least that’s the plan.

    • It keep a few hundred in cash in the house, just in case. Last week, Wells Fargo’s ATM network crashed for several hours. How many of their customers had no cash on hand when they needed it?


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